Toward advancing semiconductor research and development (R&D) initiatives in America, U.S. Reps. Blake Moore (R-UT), Michael McCaul (R-TX), and John Moolenaar (R-MI) on Jan. 28 proposed a bipartisan bill to create an investment tax credit for semiconductor design expenditures.
Semiconductor design is an R&D activity that works to improve how chips process information and enable increasingly complex modern technologies.
“Semiconductors are the linchpin to the technologies of the future in countless sectors, from health care to defense to energy, and they are critical to U.S. national security and global competitiveness,” said bill sponsor Rep. Moore. “I thank my colleagues for their partnership in reintroducing the STAR Act, and I look forward to the investment incentives this bill will bring to enhance U.S. leadership in chip design and maintain a secure value chain for these innovations.”
The Semiconductor Technology Advancement and Research (STAR) Act of 2025, H.R. 802 — which has 13 original cosponsors, including Reps. Moolenaar and McCaul, as well as U.S. Reps. Vern Buchanan (R-FL) and Suzan DelBene (D-WA) — would amend the Internal Revenue Code of 1986 to add qualified semiconductor design expenditures to the advanced manufacturing investment credit, according to the bill’s text.
“This bipartisan legislation cuts taxes, protects jobs, and levels the playing field for American chipmakers,” Rep. Moolenaar said. “The STAR Act fuels innovation, ensuring America stays ahead of the curve.”
H.R. 802 would allow for a 25-percent tax credit for semiconductor design R&D expenditures and reauthorize the 48D manufacturing tax credit for the next 10 years. The measure also would help ensure semiconductor intellectual property originates in the United States and is secure, according to a bill summary provided by the lawmakers.
“We’re proud to empower US chipmakers to outpace Chinese competitors that steal American intellectual property and benefit from massive state subsidies,” said Rep. Moolenaar.
Rep. McCaul also called the chip revolution the greatest technological advancement since the Manhattan Project, a top-secret World War II program to develop the first atomic bomb.
“U.S. production of semiconductor chips is an economic and national security imperative, which is why I authored the CHIPS for America Act — to decrease our reliance on other countries for these critical assets,” said Rep. McCaul. “I am proud to cosponsor the bipartisan STAR Act to build on that success, further bolstering our national security and bringing high-paying jobs to our communities.